World Acceptance Corporation (WRLD) and The Competition Critical Survey

World Acceptance Corporation (NASDAQ: WRLD) is one of 27 public companies in the “Consumer Lending” industry, but how does it compare to its competitors? We will compare World Acceptance Corporation to similar businesses based on the strength of its dividends, earnings, institutional ownership, analyst recommendations, risk, profitability and valuation.

Profitability



This table compares World Acceptance Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Acceptance Corporation 13.13% 15.75% 8.48%
World Acceptance Corporation Competitors -28.49% -17.33% 0.55%

Analyst Ratings

This is a summary of recent ratings and recommmendations for World Acceptance Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Acceptance Corporation 3 0 0 0 1.00
World Acceptance Corporation Competitors 167 674 1060 51 2.51

World Acceptance Corporation presently has a consensus target price of $59.00, suggesting a potential downside of 27.33%. As a group, “Consumer Lending” companies have a potential upside of 35.84%. Given World Acceptance Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe World Acceptance Corporation has less favorable growth aspects than its competitors.

Volatility & Risk

World Acceptance Corporation has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, World Acceptance Corporation’s competitors have a beta of 1.49, indicating that their average stock price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

92.1% of World Acceptance Corporation shares are held by institutional investors. Comparatively, 77.8% of shares of all “Consumer Lending” companies are held by institutional investors. 27.3% of World Acceptance Corporation shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares World Acceptance Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
World Acceptance Corporation $533.56 million $136.07 million 10.17
World Acceptance Corporation Competitors $564.84 million $92.07 million 17.28

World Acceptance Corporation’s competitors have higher revenue, but lower earnings than World Acceptance Corporation. World Acceptance Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

World Acceptance Corporation beats its competitors on 7 of the 13 factors compared.

World Acceptance Corporation Company Profile

World Acceptance Corporation operates a small-loan consumer finance business in 15 states and Mexico as of March 31, 2016. The Company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans generally between $300 and $4,000 through 1,339 branches in Alabama, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2016. The Company generally serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses and credit card lenders. In the United States branches, the Company also offers income tax return preparation services to its loan customers and other individuals.

Receive News & Ratings for World Acceptance Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for World Acceptance Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply